Appendix
Ratio
Calculation
Asset Productivity Average Collection Period (days)
Accounts Receivable ÷ 365 days)
Inventory Turnover
Cost of Sales ÷ Total Inventory at Cost
Inventory Holding Period
365 days ÷ Inventory Turnover
Sales to Inventory Ratio
Net Sales ÷ Total Inventory at Cost
Absorption Factor
(Parts, Service & Rent-to-Rent Gross Profit) ÷ (Total Operating Expenses + Interest Expense) x 100
Employee Productivity Sales per Employee
Net Sales ÷ Total Full-Time Equivalent Employees
Gross Profit per Employee
Gross Profit ÷ Total Full-Time Equivalent Employees
Salary per Employee
Total Wages, Salaries, Commissions & Bonuses ÷ Total Full-Time Equivalent Employees
Payroll per Employee
Payroll Expenses ÷ Full-Time Equivalent Employees
Payroll Expense % (% of sales)
Payroll Expense ÷ Net Sales x 100
2022 AED COST OF DOING BUSINESS REPORT (ANALYSIS OF 2021 OPERATIONS) 71
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